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Brownfield Development: The Örebro DC1 Case

Örebro DC1 is Prologis’ oldest property in Sweden. Built in 1967 and renovated several times, the 48,000 square foot building was in need of a substantial face-lift and upgrades to its environmental specifications. Work is now finished. We spoke to Magnus Thim—Prologis senior property manager in Scandinavia, who is responsible for the job—to hear his thoughts and observations about the brownfield renovation project.

“The entire venture creates a more modern, more attractive and more sustainable property in one of the country’s absolutely best logistics locations,” says Magnus. “The project is proof that Prologis has a long-term focus on its property holdings. Our tenants really appreciate that it’s not simply a question of buying and selling.”

Although the building was due for an update it was far from worn out, so Prologis decided to invest heavily. Among the most visible changes is new paneling on the facade. Magnus points out, “We are, however, keeping the brick facade in the front so that the style of the building is maintained to a certain extent. The new panels will improve the energy efficiency of the entire building.”

The change to LED lighting with sensor control is yet another reinforcement of the building’s environmental profile. It not only provides up to 35 percent improved energy efficiency, it also improves lighting considerably for those who work on the premises. The heating control system has been modernized, which contributes to future-proofing the building in regard to energy use.

Other elements that will receive attention are the ports and docks, which will be replaced for improved functionality. The floor inside the warehouse section has been renovated and strengthened in certain places to bear heavy loads. Even the changing rooms, toilets and office space are getting a face-lift. A curious detail is that the premises already feature two fully functioning bowling lanes, a gymnastics hall and a health center—all of which will remain.

The new tenant is KGA Logistik AB. The company is one of Sweden’s market leaders in beverage distribution. KGA Logistik AB is an independent subsidiary of the restaurant wholesaler Martin & Servera whose biggest client is Systembolaget. The move means that KGA Logistik AB will almost double its warehouse capacity and bring approximately 60 employees to Örebro.